08-30-2019, 06:11 AM
I have not heard of any local ones loaning for lava zone 1, but some of the national ones might, IF you never mention the term "lava". Bank of Hawaii is not loaning in zone 1 or 2. There have been a lot of cash sales in the area lately - certainly not every sale needs someone to get a mortgage.
If you are renting it out, your property tax exemption for living in it, goes away. You will be paying a higher tax rate. But there is no rule that you have to rent for your costs or above. Besides, when renting you get to utilize depreciation schedules which will help you to show a "loss". Of course you later have to pay taxes on the gain that includes that "loss" you took for depreciation over the years.
If you are renting it out, your property tax exemption for living in it, goes away. You will be paying a higher tax rate. But there is no rule that you have to rent for your costs or above. Besides, when renting you get to utilize depreciation schedules which will help you to show a "loss". Of course you later have to pay taxes on the gain that includes that "loss" you took for depreciation over the years.